Fast-food company Restaurant Brands (NYSE: QSR) will be reporting earnings this Thursday morning. Here’s what you need to know.
Restaurant Brands beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $2.41 billion, up 15.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and same-store sales in line with analysts’ estimates.
Is Restaurant Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Restaurant Brands’s revenue to grow 4.4% year on year to $2.39 billion, slowing from the 24.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.00 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Restaurant Brands has only missed Wall Street’s revenue estimates once since going public and has exceeded top-line expectations by 0.6% on average.
Looking at Restaurant Brands’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 0.9%, and The Cheesecake Factory reported revenues up 4.8%, falling short of estimates by 0.5%. Domino's traded up 2.2% following the results.
Read our full analysis of Domino’s results here and The Cheesecake Factory’s results here.
Investors in the restaurants segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Restaurant Brands is up 1.7% during the same time and is heading into earnings with an average analyst price target of $77.17 (compared to the current share price of $66.73).
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